Judge orders Qualcomm stop selling chips that infringe Broadcom

Published 6:00 pm, Monday, December 31, 2007

U.S. District Judge James Selna issued the ruling, the latest in a series of legal victories Broadcom Corp. scored over Qualcomm Inc. this year related to rights to technology for cell phones. The three patented chips use WCDMA technology, a small but fast-growing part of the wireless market used mostly in American T-Mobile and AT&T phones.

Selna ruled that Qualcomm can continue to sell other disputed chips in the United States until January 2009, but must pay royalties on those chips, which use a different technology called EVDO and are used on Verizon and Sprint networks in America. He also allowed Qualcomm to use a patented Broadcom walkie-talkie technology until January 2009.

Broadcom representatives were happy with the New Year's Eve ruling despite what appeared to be a split decision that stemmed from a lawsuit filed in 2005.

"The ruling is very close to what we asked for," said David Rosmann, Broadcom's vice president for intellectual-property litigation.

A Qualcomm spokeswoman said the company was reviewing the ruling and declined to comment further.

Qualcomm, based in San Diego, is the world's second-largest chip supplier for mobile phones after Texas Instruments Inc. It earns much of its money from licensing fees on its patented technology.

Broadcom, based in Irvine, is a newcomer to the cell phone business but gained ground in 2007 in a wide-ranging court battle with Qualcomm.

In May 2007, a jury awarded Broadcom $19.6 million in damages for the same chip patents. In November, Selna indicated he would up the award to $39.3 million, but reversed himself when a federal appellate court raised the bar for proving willful patent infringement.

The judge then took up the question of whether future sales of the chips should be stopped, resulting in Monday's order.